One of my favorite websites for general commentary and interesting nuggets of information is Bespoke Investment Group http://bespokeinvest.typepad.com/
Here’s a nice bit of commentary from today – I thought I’d pass it on for those of you who haven’t been on this ride before.
The much awaited "test" of the November lows is here for the Dow Jones Industrials Average. While this is quite depressing while it's occurring, it's a normal part of a "bottoming process" if the bottom is indeed being made. If the market holds and can bounce off of these levels over the next few days, those hoping that the lows are in will breathe a sigh of relief. If, however, this support level breaks and the market heads lower, the last three months of a "bottoming process" will be a complete waste, and the cycle will have to be repeated again once a new short-term bottom is put in.
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To me, I find this incredibly exciting, especially after the constraints of the 3-4 month triangle that we just broke out of today.
Sometime this week, the bottom will either be successfully tested and all kinds of bulls will come running back into the market and will ignite a huge rally and we’ll make lots of $$$ on the financial ETFs - UYG and FAS.
OR… sometime this week the bottom retest will fail – the indices will go plunging through the floor, panic will ensue, and we’ll make lots of $$ on the inverse financial ETFs – SKF and FAZ.
Either way, there’s going to be a lot of money made this week – it is our job to make sure that we are among those who make it.
Later.